LANGKAWI, Mar 21 – The opening ceremony of 14th Langkawi International Maritime and Aerospace (LIMA) Exhibition was officiated by Prime Minister YAB Dato’ Sri Mohd Najib Bin Tun Abd Razak at Mahsuri International Exhibition Centre (MIEC) here this morning. It was 5 days event which held at the on 21-25 August 2016.
LIMA Exhibition, one of the world’s largest maritime and aerospace growth markets, and its has also become a mainstay of the global events calendar. This 14th edition of the LIMA Exhibition has gathered more than 55 percent of the world’s top 100 maritime and aerospace companies here today, with 520 companies from 35 countries present.
Estimated that there were more than 40,000 trade visitors will be walked through the exhibition halls, and that is a great testament to LIMA’s ability to generate business and public interest. Prime Minister said defence and security are of paramount importance to any nation, as they are vital for maintaining territorial integrity and national sovereignty.
He said it had given the traditional and non-traditional threats facing this region and beyond, defence expenditure is likely therefore to continue to rise. He said defence industries have a significant role to play in ensuring that our armed forces are equipped properly. Further, he also said that the role of the defence industry is also changing dramatically, as new and changing threats require further research and development, increasing the overall costs and pricing of defence products and services.
“We need to equip our fighting men with the capabilities required to face modern warfare, both symmetrical and asymmetrical, and LIMA`17 brings together major aerospace and maritime firms from around the world to demonstrate their state-of-the-art static and aerial displays and cutting-edge technologies,” Prime Minister said.
“We take this very seriously here in Malaysia. We have allocated a total of RM 26 billion under the 11th Malaysia Plan to cover defence, public order and enforcement. Our defence spending will continue to grow as the Malaysia Armed Forces have embarked on a long-term capability plan to modernise and upgrade the equipment that we have at the moment,” he said.
It was in 2015, here in Langkawi, that the Malaysian Aerospace Industry Blueprint 2030 was launched, setting a new ambition for Malaysia to become the leading aerospace nation in South East Asia, and to be an integral part of the global market. By 2030, the aerospace industry is targeted to generate an annual revenue of RM55.2 billion and create more than 32,000 high income jobs.
The Ministry of International Trade and Industry, or MITI, was assigned as the leading ministry to oversee the overall development of the industry. In August 2015, MITI established the National Aerospace Industry Coordinating Office to coordinate implementation of the Blueprint until the year 2030.
Today, Malaysia is one of the critical suppliers to Airbus and Boeing, with Malaysia producing more than 55 percent of composite wing parts for the A320 and B737. Last year, the total trade for aerospace products stood at RM17.47 billion. Exports of Malaysia’s aerospace products, primarily parts and components, recorded a significant increase of 32.6 percent from the previous year, amounting to RM5.53 billion.
In terms of revenue, the aerospace industry earned RM12.7 billion in 2016, and employed more than 21,000 highly skilled workers. Growth in this sector is expected to continue, as nine additional nine aerospace projects, with investments of RM1.6 billion, were approved in 2016 – of which 57 percent were from foreign investors. The approved projects are expected to generate a total of 1,766 employment opportunities.
Furthermore, during LIMA 2015, the focus on ASEAN strengthened LIMA’s foundation as a successful business platform for the maritime and aerospace industries in one of the fastest growing economic groups in the world. The global shipbuilding/ ship repair industry industry has been severely hit by the global economic uncertainty.
However, demand in local markets is still high and remains resilient. Malaysia currently contributes a significant amount of the world newbuilding orderbook and is ranked 26th in the list of nations with the largest merchant fleet. In the 2017 budget, the Government announced an allocation of RM1.8 billion for defence maintenance activity, including asset maintenance for the Malaysian Navy, the Malaysian Maritime Enforcement Agency (MMEA) and Marine Police.
For the commercial sector, it is estimated that around RM700 million in repair and conversion work will be available for local shipyards. Prime Minister said the situated int the heart of one of the most vibrant maritime and aerospace markets, with strong connections to the region and an open, business-friendly economy – Malaysia future prospects are strong.
“We recently also received a new accolade from BAV Consulting and the Wharton School of the University of Pennsylvania. In their 2017 survey, they awarded Malaysia first place – as the best country to invest in,” said Prime Minister during the launching ceremony.
“Even in the unsettled times, Malaysia posted growth 4.2 percent in 2016. A similar figure is expected for this year, with higher growth anticipated in 2018 and beyond. In fact PriceWaterhouse Coopers recently reported that Malaysia is expected to earn the 25th highest Gross Domestic Product in world by 2030,” he added.
Also present were Deputy Prime Minister, YAB Dato’Seri Dr. Ahmad Zahid bin Hamidi; Menteri Besar of Kedah, YAB Dato’ Seri DiRaja Ahmad Bashah bin Md Hanipah; Minister of Defence Malaysia, YB Dato’ Seri Hishammuddin bin Tun Hussein; and Minister of Transport Malaysia, YB Dato’ Sri Liow Tiong Lai.
Also present were Minister of International Trade and Industry Malaysia, YB Dato’ Sri Mustapa Mohamed; Executive Chairman EN Projects (M) Sdn Bhd, YBhg. Vice Admiral (Rtd) Senator Tan Sri Mohd Anwar bin Haji Mohd Nor; and Cabinet Minister of Malaysia.
